SAFE Supply Chains Act
- Bill Number
- H.R. 2765
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Armed Forces and National Security
- Status
- Introduced
- Latest Action
- 2025-04-09: Referred to the House Committee on Armed Services.
- Last Updated
- 2026-01-14T05:17:39Z
AI-Generated Summary
Purpose of the Legislation
The "Securing America's Federal Equipment Supply Chains Act" (H.R. 2765), also known as the "SAFE Supply Chains Act," aims to enhance the security of the Department of Defense's (DoD) supply chains by requiring the procurement and use of specific information and communications technology (ICT) products—such as hardware, software, and firmware—only from trusted sources. This helps prevent risks like counterfeit, tampered, or adversary-influenced products that could compromise national security.
Key Provisions
- Definitions:
- Covered product: Refers to end-use ICT hardware or components (ready for direct use), including embedded software and firmware, but excludes standalone software or devices where ICT is not the main function (e.g., a car with embedded tech).
- Original equipment manufacturer (OEM): A company that designs and sells its own branded ICT products made from its components or purchased parts.
- Authorized reseller: A seller, supplier, or distributor with a direct contract or written permission from the OEM to handle, repair, or distribute the product.
- ICT: Broadly defined under existing federal law (41 U.S.C. § 4713) as technology for creating, storing, or transmitting data, including updates to federal procurement rules.
- Prohibition on Procurement and Use: Starting one year after enactment, the DoD cannot buy, contract for, or use covered products from any entity other than an OEM or authorized reseller. This overrides certain existing federal procurement exceptions (41 U.S.C. §§ 1905–1907) related to small purchases or simplified acquisitions.
- Waivers: The Secretary of Defense can temporarily waive the prohibition if needed for:
- Scientifically valid research (as defined in federal education law, meaning rigorous, evidence-based studies).
- Avoiding harm to critical military missions.
Waivers require notice to congressional defense committees, including justifications, security safeguards, a plan to reduce future needs, and a statement that the product is not from a foreign adversary-influenced entity. Notices are unclassified but may include classified details; research waivers last only for the project's duration.
- Vendor Support: The DoD must create guidance to help ineligible vendors (those not authorized) become authorized resellers.
- Reporting Requirements: The DoD must submit annual unclassified reports (with optional classified annexes) to Senate and House Armed Services Committees for six years, detailing:
- Number and types of waivers granted.
- Legal basis for each waiver.
- Steps to minimize future waivers and achieve full compliance.
- Funding and Timeline: No new federal money is authorized for implementation; the rules take effect one year after the bill becomes law.
Significant Changes to Existing Law
This bill introduces a new, specific mandate for DoD ICT procurement, overriding limited exceptions in federal acquisition laws that previously allowed purchases from unverified sources for small or urgent needs. It builds on existing ICT security definitions but adds tailored restrictions and waiver processes not previously required for defense supply chains, emphasizing OEM and authorized channels to address emerging threats like supply chain vulnerabilities.
Potential Impacts
- On Government Agencies: The DoD will face stricter procurement rules, potentially increasing costs, administrative burdens, and delays in acquiring ICT products. It promotes supply chain integrity, reducing risks of cyber threats or hardware failures in military operations.
- On Citizens: Indirect benefits through enhanced national security, as safer defense technology could protect public safety and infrastructure reliant on military systems. No direct effects on individual rights or daily life.
- On International Relations: Strengthens U.S. defenses against foreign adversaries (e.g., by avoiding products from controlled entities), potentially straining ties with countries involved in unauthorized ICT manufacturing while encouraging alliances with trusted OEMs and resellers globally.
Main Stakeholders Affected
- Department of Defense: Primary implementer, responsible for compliance, waivers, reporting, and vendor guidance.
- Original Equipment Manufacturers and Authorized Resellers: Benefit from exclusive access to DoD contracts, boosting their business but requiring verification of supply chains.
- Unauthorized Vendors and Suppliers: Face exclusion from DoD sales, potentially losing revenue; the guidance provision offers a path to eligibility.
- Congressional Defense Committees: Gain oversight through notices and reports to monitor enforcement.
- Researchers and Military Operators: May need waivers for specialized needs, with added scrutiny to ensure security.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces federal procurement authority under Title 41 while providing DoD flexibility via waivers, ensuring compliance with constitutional spending powers (no new appropriations needed). It aligns with broader U.S. efforts to counter supply chain risks without creating new regulatory bodies.
- Constitutional: No direct challenges; supports national defense under Article I, Section 8, by prioritizing secure military resources.
- Political: Bipartisan sponsorship (by Reps. Fallon and Khanna) signals cross-party consensus on supply chain security amid rising geopolitical tensions. Could set a precedent for similar restrictions in other federal agencies, influencing future defense budgets and tech policy debates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-04-09: Referred to the House Committee on Armed Services.
- 2025-04-09: Introduced in House
- 2025-04-09: Introduced in House
Bill Versions
- Securing America’s Federal Equipment Supply Chains Act — issued 2025-04-09 — PDF (7 pages)